I have also seen appraisers recognize that multiple ADUs by rule does not qualify for conventional F/f financing.  

And also, know everything about operating real estate, if you really want to know the risks: business plan, financing structures, ability to execute, market research to vet their underwriting assumptions, how fees can influence investment decisions...3.

Currently selling two SFRs to 1031 into a seller financed 9 unit mixed use property - I am still excited to learn new strategies 13 years later.I have some of my investments on my profile and some info regarding each.

Hi Michael,  I’m a real estate investor, realtor and we finance investment properties.  

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

If there aren't any massive physical problems with the property, it appears you can grow income and equity.You might be able to buy this with little cash out of pocket if the seller owns it free and clear and was willing to finance nearly all of it.  

If you have any questions and/or concerns on mortgage financing, please let us know if we can be of any assistance. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

And don’t underestimate the power of direct outreach; some sellers may be more flexible if you present a clear, structured plan for partnership or financing.

We find off market deals through out property management clients How did you finance this deal?